Individual to
be informed
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(5) At the time the account is opened, the
bank shall inform the individual that the
agreement and the information will be
provided in writing at the individual's
request.
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49. Sections 449 and 450 of the Act are
replaced by the following:
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Definition of
``cost of
borrowing''
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449. For the purposes of this section and
sections 449.1 to 456, ``cost of borrowing''
means, in respect of a loan made by a bank,
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For those purposes, however, ``cost of
borrowing'' does not include prescribed
charges.
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Rebate of
borrowing
costs
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449.1 (1) Where a bank makes a loan in
respect of which the disclosure requirements
of section 450 apply, and the loan is not
secured by a mortgage on real property and is
required to be repaid either on a fixed future
date or by instalments, the bank shall, if there
is a prepayment of the loan, rebate to the
borrower a portion of the charges included in
the cost of borrowing in respect of the loan.
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Exception
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(2) The charges to be rebated do not include
the interest or discount applicable to the loan.
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Regulations
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(3) The Governor in Council may make
regulations governing the rebate of charges
under subsection (1). The rebate shall be made
in accordance with those regulations.
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Disclosing
borrowing
costs
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450. (1) A bank shall not make a loan to a
natural person that is repayable in Canada
unless the cost of borrowing, as calculated and
expressed in accordance with section 451, and
other prescribed information have , in the
prescribed manner and at the prescribed time ,
been disclosed by the bank to the borrower.
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Non-appli- cation
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(2) Subsection (1) does not apply in respect
of a loan that is of a prescribed class of loans .
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50. (1) Subparagraph 452(1)(a)(i) of the
Act is replaced by the following:
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(2) Subsection 452(1) of the Act is
amended by striking out the word ``and'' at
the end of paragraph (a) and by adding the
following after paragraph (b):
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(3) Subsection 452(2) of the Act is
replaced by the following:
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Disclosure re
charge cards
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(2) Where a bank makes a loan to a natural
person through the use of a credit, payment or
charge card, the bank shall, in addition to
disclosing the costs of borrowing and any
charges or penalties described in paragraph
(1)(b), disclose to the person, in accordance
with the regulations,
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Additional
disclosure re
other loans
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(3) Where a bank under any arrangement,
including a line of credit, makes a loan in
respect of which the disclosure requirements
of section 450 apply and the loan is not a loan
in respect of which subsection (1) or (2)
applies, the bank shall, in addition to
disclosing the costs of borrowing, disclose to
the person to whom the loan is made, in
accordance with the regulations,
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51. Sections 453 and 454 of the Act are
replaced by the following:
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Renewal
statement
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452.1 Where a bank makes a loan in respect
of which the disclosure requirements of
section 450 apply and the loan is secured by a
mortgage on real property, the bank shall
disclose to the borrower, at such time and in
such manner as may be prescribed, such
information as may be prescribed respecting
the renewal of the loan.
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Disclosure in
advertising
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453. No person shall authorize the
publication, issue or appearance of any
advertisement in Canada relating to loans
offered to natural persons by a bank and
purporting to disclose any information about
the cost of borrowing or other prescribed
information unless the advertisement
contains prescribed information in such form
and manner as may be prescribed.
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Regulations re
borrowing
costs
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454. The Governor in Council may make
regulations
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52. Paragraph 455(1)(a) of the Act is
replaced by the following:
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53. Subsection 456(1) of the Act is
replaced by the following:
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Contacting
Superinten- dent
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456. (1) If a customer of a bank has a
complaint about a deposit account, an
arrangement referred to in subsection 452(3),
a payment, credit or charge card or the
disclosure of or manner of calculating the cost
of borrowing in respect of a loan, the bank
shall, in the prescribed manner, provide the
customer with prescribed information on how
to contact the Office of the Superintendent of
Financial Institutions.
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54. Paragraph 458(3)(b) of the Act is
replaced by the following:
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55. Section 459 of the Act is replaced by
the following:
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Regulations re
customer
information
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459. The Governor in Council may make
regulations
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Restriction on
tied selling
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459.1 (1) A bank shall not impose undue
pressure on, or coerce, a person to obtain a
product or service from a particular person,
including the bank and any of its affiliates, as
a condition for obtaining a loan from the bank.
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Favourable
loan tied to
other sale
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(2) For greater certainty, a bank may offer
to make a loan to a person on more favourable
terms or conditions than the bank would
otherwise offer to a borrower, where the more
favourable terms and conditions are offered
on the condition that the person obtain another
product or service from any particular person.
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Favourable
other sale tied
to loan
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(3) For greater certainty, a bank or one of its
affiliates may offer a product or service to a
person on more favourable terms or
conditions than the bank or affiliate would
otherwise offer, where the more favourable
terms and conditions are offered on the
condition that the person obtain a loan from
the bank.
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Bank
approval
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(4) A bank may require that a product or
service obtained by a borrower from a
particular person as security for a loan from
the bank meet with the bank's approval. That
approval shall not be unreasonably withheld.
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Regulations
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(5) The Governor in Council may make
regulations
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56. (1) Paragraphs (b) and (c) of the
definition ``information services
corporation'' in subsection 464(1) of the Act
are replaced by the following:
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(2) The portion of the definition ``special
purpose computer hardware'' in subsection
464(1) of the Act before paragraph (a) is
replaced by the following:
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``special
purpose
computer
hardware'' « matériel informatique spécial »
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``special purpose computer hardware'' means
computer equipment that is integral to the
provision of
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57. (1) Subsection 466(1) of the Act is
replaced by the following:
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Restriction on
substantial
investments
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466. (1) Subject to subsections (2) to (3.1) ,
no bank shall acquire or increase a substantial
investment in any entity, other than an entity
referred to in section 468 or 469.
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(2) Paragraph 466(2)(b) of the Act is
replaced by the following:
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(3) The portion of subsection 466(3) of the
Act before paragraph (a) is replaced by the
following:
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Exception:
temporary
investments,
realizations
and loan
workouts
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(3) A bank may acquire or increase a
substantial investment in an entity by way of
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(4) Section 466 of the Act is amended by
adding the following after subsection (3):
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Exception:
specialized
financing
corporation
type
investment
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(3.1) A bank may acquire or increase a
substantial investment in an entity as
permitted by paragraph 410(1)(c.2).
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58. (1) Paragraph 468(1)(l) of the Act is
replaced by the following:
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